Affiliated Managers Group, NorthStar Realty Finance price deals; GE Capital trades actively

By Stephanie N. Rotondo

Phoenix, Oct. 3 - There was no letting up in the new issue preferred market on Wednesday.

Two deals priced by the end of the day, a $25-par notes offering from Affiliated Managers Group Inc. and a straight preferred sale from NorthStar Realty Finance Corp. Each issuer sold $125 million of its respective securities.

In the secondary space, Royal Bank of Scotland Group plc continued to see heavy trading. The typically volatile preferreds were generally firm on the day.

Overall, it was a positive day for the preferred arena, a market source said. He said the market was up 3 to 4 cents on average for $25-par issues.

Affiliated, NorthStar price

Affiliated Managers Group priced a $125 million offering of 5.25% 10-year senior notes after the bell. The deal came in line with talk, which was 5.25%.

"It's looking OK," a trader said, seeing a $24.70 bid for paper in the gray market ahead of pricing. "I like the structure of it. That thing should hang in there pretty well."

NorthStar Realty Finance meantime priced a $125 million sale of 8.875% series C cumulative redeemable perpetual preferreds.

That paper was also at $24.70 bid in the gray market ahead of pricing, though there were few markets flying around, according to a trader.

Recent deals and listings

Among recently priced deals, a trader saw General Electric Capital Corp.'s $825 million of 4.875% $25-par senior notes due 2052 at $24.70 bid, $24.75 offered. The deal priced late Tuesday.

"There's a decent amount of action in it," he said, noting that it is a "highly rated name."

The trader also remarked how the notes had "pulled back as soon as they adjusted the price talk below 5%" ahead of pricing on Tuesday.

Meanwhile, Apollo Investment Corp.'s $150 million of 6.625% $25-par senior notes due 2042 freed to trade, a trader said. The deal came Monday.

The issue was not performing as well as some other recent deals, the trader noted. He pegged the securities at $24.40 bid, $24.50 offered.

"Considering the coupon and the rating, it seems a little soft," he said. "I'm kind of surprised."

He further opined that perhaps the weakness was due to oversupply in the market.

Wednesday also saw three recent deals hit the New York Stock Exchange.

Gabelli Equity Trust Inc.'s new 5% series H cumulative preferreds were admitted under the ticker symbol "GABPH." The issue came Sept 25. The preferreds were up 28 cents, or 1.11%, trading at $25.45.

Also from Sept. 25, DTE Energy Co.'s 5.25% $25-par 2012 series C junior subordinated debentures due 2062 listed under the ticker symbol "DTQ." They were at $25.23 versus opening levels of $25.28.

And Resource Capital Corp.'s 8.25% series B cumulative redeemable preferreds, which also priced Sept. 25, hit the NYSE under the ticker symbol "RSOPB." The paper gained 7 cents, ending at $24.92.

RBS climbs

Royal Bank of Scotland paper ticked up in midweek trading.

The 6.75% series Q noncumulative dollar preference shares (NYSE: RBSPQ) rose 30 cents, or 1.42%, to $21.46. The 6.6% series S noncumulative dollar preference shares (NYSE: RBSPS) earned 25 cents, or 1.2%, to close at $21.15.

RBS tends to trade with the overall tone of the market and usually in decent size. Of late, however, the preferreds have been steadily inching higher.

"As soon as [European Central Bank president Mario] Draghi said they would do absolutely everything they needed to maintain the system," the securities began rallying, a trader said.

RBS is an Edinburgh-based bank majority owned by the U.K. government.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.